WeWork’s bankruptcy endgame is coming into focus.
The beleaguered coworking firm announced this week it had a path forward for 90 percent of its locations across the globe. The company is continuing to amend leases and reject others as it weaves through Chapter 11 bankruptcy, though many of its leases will also stay unchanged.
WeWork is splitting its leases relatively evenly. Roughly 150 are going to remain with agreed-to terms, while 150 are being amended and 150 are being rejected. The company anticipates saving more than $8 billion, a reduction of more than 40 percent in future rent commitments.
WeWork has also reached an agreement with holders of roughly 92 percent of the company’s secured notes to wipe out more than $3 billion in debt obligations secured prepetition.
The company is targeting its exit from Chapter 11 in the United States and Canada by the end of next month. WeWork intends to emerge with little to no debt, according to company leadership.
The latest bankruptcy plan was first reported by the Wall Street Journal.
“We are well on our way to building a strong and sustainable WeWork,” CEO David Tolley said in a statement.
WeWork filed for bankruptcy in November, chalking its losses in the billions. It was a dramatic shift for the coworking company that was once valued as high as $47 billion; in 2023, the company announced a loss of $2.3 billion.
The company went on a leasing spree in the 2010s, installing its trendy coworking style in office buildings across the country and rose to be one of the largest controllers of office space in New York City.
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But the fall of company founder Adam Neumann precipitated the fall of the company, which left some landlords with abandoned spaces and millions of dollars owed in back rent.
It was reported last month Neumann submitted a bid to buy the bankrupt company for more than $500 million. It remains unclear how he was planning to fund any potential purchase of his old firm.
WeWork’s stock is inactive. The company’s market capitalization at the end of Monday was $5.3 million, according to FactSet data reported by MarketWatch.